Business Rule

A Business Rule is a specific directive or condition that defines or constrains how business operations should be conducted, ensuring consistency and compliance with policies or regulations. In the IT context, Business Rules guide how systems process data, enforce policies, or determine outcomes in automated workflows and applications.

These rules translate business policies into precise statements that software systems can enforce, helping organizations maintain standards and avoid errors. Examples include rules like “a discount applies only if a customer spends over $500” or “an invoice must be approved by a manager if it exceeds $10,000.” Capturing Business Rules clearly is crucial for IT projects to ensure that technology accurately supports real-world business practices.

Business Requirements vs Business Rules – 9 mins